Catalent acquires gene therapy company Paragon Bioservices

Advanced delivery technologies firm Catalent (NYSE: CTLT) has entered into a definitive agreement to acquire Paragon Bioservices, a leading viral vector development and manufacturing partner for gene therapies, for $1.2 billion in cash.

The company said it will fund the deal with proceeds from a $650 million incremental term loan and issuance of $650 million of a new series of convertible preferred stock. The transaction is expected to close in the second quarter of 2019. Catalent’s shares closed up 13.12% at $44.41 on Monday following the announcement.

"Paragon's unparalleled expertise in the rapidly growing market of gene therapy manufacturing will be a transformative addition to our business that we believe will accelerate our long-term growth. Paragon brings to Catalent a complementary capability that will fundamentally enhance our biologics business and our end-to-end integrated biopharmaceutical solutions for customers," said John Chiminski, Catalent's chairman and chief executive of Catalent.